Canada's Tariff Remission System Returns Billions to Importers, but Small Businesses Still Struggle
Ottawa has remitted $5.5 billion of the $9.7 billion collected in customs duties on U.S. imports since March 2025, blunting the impact of retaliatory tariffs. However, a 2026 study shows that 52% of tariff-impacted small businesses report worse performance, and most owners see no benefit from relief programs or the 'Buy Canadian' movement.
The federal government imposed or increased duties on 629 American products in response to U.S. tariffs on roughly $28 billion worth of Canadian goods. Despite the broad scope of these measures, Ottawa’s remission system has provided significant tariff relief, with roughly one-third of the 629 targeted items already covered by existing orders carrying some form of exemption.
For the approximately 300 steel and aluminum goods on the list, the share of items receiving remission relief rises to more than three-fifths. The Department of Finance has received more than 1,800 remission requests related to U.S. surtaxes since March 2025. Between March 2025 and April 17, 2026, Canada assessed $9.7 billion in gross revenue from customs duties on U.S. imports, of which $5.5 billion—roughly 57%—was remitted back to importers.
Companies can avoid duties if they prove products cannot be sourced domestically or from non-U.S. suppliers. Magna International Inc., for example, holds eight remission approvals covering 17 tariff categories of steel, including screws, bolts, and galvanized sheet. This system is designed to mitigate inflationary pressures and supply chain disruptions. A Bank of Canada study found that prices for targeted items rose by around 6% due to retaliatory measures, adding about 0.3% to headline inflation at the peak of the price shock.
While the remission framework helps larger manufacturers, smaller enterprises are reporting continued hardship. According to the 2026 Canadian Small Business Report by Merchant Growth, nearly two in three (65%) small business owners say U.S.-Canada trade tensions have affected their business in 2026. Among those impacted by tariffs, 52% say their business is performing worse than it was at this point last year.
Government support programs have not translated into widespread relief at the local level. The report indicates that 68% of small business owners say they have seen no noticeable impact from federal and provincial tariff relief programs. Consumer sentiment has also fallen short of expectations for many operators: while 56% of Canadian consumers have shopped more from Canadian small businesses in the past 12 months, 67% of small business owners say the "Buy Canadian" movement hasn't had a noticeable impact on their business.
Facing economic pressures, 22% of small business owners have used personal credit, such as credit cards or home equity lines of credit, to fund their operations.